A bull market is a once in a year occurrence of market wide euphoria. A bull market symbolises widespread optimism which manifests itself in the form of above-average volume levels, daily price surges and an over abundance of high profit opportunities.
During a market wide bull run, you are liable to see many phenomenal things occur – things that just do not happen under normal market conditions.
For example, during a bull market, it becomes a natural occurrence that the price of a coin surges upwards into stratospheric regions on a daily basis – supported by a mountain of trading volume that increases in size with each passing day.
As a trader, this is when all of your hard work pays off. This is when you’re literally able to witness the profit providing power of the altcoin market in real time.
I have mentioned on several occasions that a bear market allows skilled players to seize all of the prime real estate in this market whilst attention is diverted elsewhere, whereas a bull market allows them to cash in their chips for an over-abundance of cold, hard profit!
In my last post, I made reference to the fact that the market always gives frequent evidence of its future course and direction which allows traders to work their way into positions prior to the any major price move taking place.
For months now, the word in the scene was that “the alts are dead.” This is only evidence that points to the fact that 99% of the participants in this market are of the unsophiscated variety, and therefore are unaware of the fact that markets, in general, move in cycles.
You see, if the market were to remain either bullish or bearish forever then no ‘worthwhile’ amount of money will ever change hands, simply because ‘supply’ would never change hands as there would be no reason for it to do so.
The anatomy of a bull market
Those who are authentically tuned into the mechanics and inner workings of the entire crypto currency market are well aware that bitcoin is the hood ornament of the entire industry.
Altcoins merely supplement the excess demand that bitcoin generates.
The total market cap for the altcoin market in USD is $515,864,458 whilst bitcoin has a gargantuan market capitalisation of more than $3.4 Billion which is a 500% difference in size.
Bitcoin is literally the super beacon that sits directly in the middle of the crypto currency ecosystem, and therefore has a stupendous gravitational pull on each and every altcoin that is in existence.
Simply, a price advancement or decline in the BTC/FIAT market has a direct effect on the prices and valuations in the altcoin markets.
Those who are properly tuned into market wide prices are well aware that on Jan 12 2015 bitcoin dropped to the all time lowest quoted price of the year: $152 – the price then surged to $310 on Jan 26, representing a 103% increase in value. Since then, the price has surged and then dipped and is currently at $244, which is still a 60% increase on the $151 low.
The repercussions for each of these movements were seen, very blatantly, in the altcoin markets.
More specifically, each period of stagnation and low prices in the altcoin markets can be tied directly to a high volume price surge in the BTC/FIAT markets. And each period of high volume price surges in the altcoin market is a direct repercussion of a temporary dip in price and activity in the BTC/FIAT markets.
This is the ebb and flow, or yin and yang of the entire altcoin market, and is a real time demonstration of the laws of popularity and demand.
You see, just like in any rally or pump… when bitcoin is moving upwards in price, there will always be hoards of traders who sit on the fence until they see some sort of “buy signal” that lets them feel at ease and therefore able to buy in and participate in the rally. However, as is often the case, their buy signal either never appears or turns out to be a false signal – and the price of BTC begins to plummet. This causes these traders to shift all of their funds into the altcoin market, in order to redeem themselves by participating in one of the frequent altcoins rallies.
As BTC continues to dip in price, more and more traders cash out and bring their chips into the altcoin market – which creates an abnormal influx of volume.
This is exactly what we have been seeing occur during the last few weeks.
We have been seeing piles and piles of volume surge into one particular coin at a time, causing long and extended mega rallies …and the typical indication of a prolonged market wide bull run is when the price of a coin continues to surge for several days at a time – this indicates that there is an over concentration of sell side buying, which only ever occurs when the sentiment of the market is bullish.
If you are a skilled player in this market, then you are well aware just how profitable this period is going to be. Even if you weren’t aware, there are still some prime opportunities in the market that are yet to have been exploited… plus, the total velocity of this bull run hasn’t even hit yet, we are still in the early phases of this run.
Ultimately, many people were unaware that this cycle existed, some even denied its existence. But now, it is clear that your very success in this market relies on your ability to trade in alignment with this price cycle – because, whether you know it or not, every trade that you execute is either in line with the natural flow of the market, or against the natural flow…
There are more than one hundred thousand traders who play this market day in and day out. Therefore, when one coin achieves a high level of visibility and becomes ‘the talk of the town,’ literally everyone in the market turns their attention toward that one coin.
When 100,000 traders simultaneously decide to trade just one single coin, the volume sky rockets up into abnormal levels, the price begins to viciously climb through range after range with incredible speed and urgency – and the result is an upsurge in value by epic proportions.
This is the nature of this market as it happens repetitively on a monthly basis.
However, it is important that you never forget how ruthless and unforgiving the crypto currency market can be – especially to those that do not ‘respect’ the market.
The market will give, and so too will the market take what it has given if you allow it enough room and space to do so